Wedbush Issues Pessimistic Estimate for GameStop Earnings

GameStop Corp. (NYSE:GME - Free Report) - Stock analysts at Wedbush reduced their Q1 2027 earnings per share (EPS) estimates for shares of GameStop in a report issued on Wednesday, June 11th. Wedbush analyst M. Pachter now forecasts that the company will earn $0.07 per share for the quarter, down from their prior forecast of $0.09. Wedbush has a "Underperform" rating and a $13.50 price objective on the stock. The consensus estimate for GameStop's current full-year earnings is $0.08 per share. Wedbush also issued estimates for GameStop's Q2 2027 earnings at $0.06 EPS, Q3 2027 earnings at $0.06 EPS, Q4 2027 earnings at $0.16 EPS, FY2027 earnings at $0.36 EPS and Q1 2028 earnings at $0.06 EPS.

GameStop (NYSE:GME - Get Free Report) last issued its quarterly earnings results on Tuesday, June 10th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.13. The company had revenue of $732.40 million during the quarter, compared to analysts' expectations of $754.23 million. GameStop had a return on equity of 2.11% and a net margin of 1.45%. The business's quarterly revenue was down 16.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.12) earnings per share.

Separately, Wall Street Zen raised GameStop from a "sell" rating to a "hold" rating in a research note on Thursday, March 27th.

GameStop Stock Performance

Shares of GME stock traded up $0.04 on Thursday, hitting $22.18. The company had a trading volume of 59,696,094 shares, compared to its average volume of 12,111,669. The firm has a market cap of $9.92 billion, a P/E ratio of 123.20 and a beta of -0.69. The stock's 50-day moving average is $27.96 and its two-hundred day moving average is $27.33. GameStop has a twelve month low of $18.73 and a twelve month high of $35.81.

Insider Buying and Selling

In other GameStop news, Director Alain Attal bought 10,000 shares of the firm's stock in a transaction that occurred on Thursday, April 10th. The stock was acquired at an average price of $25.75 per share, with a total value of $257,500.00. Following the completion of the purchase, the director now directly owns 572,464 shares of the company's stock, valued at approximately $14,740,948. This trade represents a 1.78% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Lawrence Cheng bought 5,000 shares of the firm's stock in a transaction that occurred on Thursday, April 3rd. The shares were acquired at an average cost of $21.54 per share, with a total value of $107,700.00. Following the purchase, the director now directly owns 83,000 shares of the company's stock, valued at $1,787,820. This trade represents a 6.41% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired 515,000 shares of company stock valued at $11,140,200 over the last 90 days. Company insiders own 12.28% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. boosted its holdings in GameStop by 3.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,610,264 shares of the company's stock worth $113,146,000 after acquiring an additional 107,354 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in GameStop by 2.4% in the fourth quarter. Bank of New York Mellon Corp now owns 2,565,455 shares of the company's stock worth $80,401,000 after acquiring an additional 60,673 shares in the last quarter. Swiss National Bank boosted its holdings in GameStop by 5.5% in the fourth quarter. Swiss National Bank now owns 834,228 shares of the company's stock worth $26,145,000 after acquiring an additional 43,700 shares in the last quarter. Slate Path Capital LP bought a new position in GameStop in the fourth quarter worth approximately $60,361,000. Finally, Handelsbanken Fonder AB boosted its holdings in GameStop by 37.4% in the fourth quarter. Handelsbanken Fonder AB now owns 109,900 shares of the company's stock worth $3,444,000 after acquiring an additional 29,900 shares in the last quarter. Institutional investors own 29.21% of the company's stock.

About GameStop

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads.